Thegreeniumrefers to thelower yield ("green premium") investors accept when purchasing green bonds, as they prioritize sustainability over purely financial returns.
Green bonds often trade at lower yields than conventional bonds due to high demand from ESG-conscious investors.
Increased return required (A) is incorrect because green bonds generally offer lower yields.
Excluding fossil fuels (C) is part of negative screening, not greenium.
[References:, Climate Bonds Initiative Greenium Research, Principles for Responsible Investment (PRI) Green Bond Market Analysis, CFA Institute ESG Fixed Income Report, ========, , ]
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